Friday tips round-up: WPP, Wood Group, Barratt

11th May 2012 06:54

In the Telegraph Questor is still keen on advertising goliath WPP. Yesterday it reported strong revenue growth in all regions, with emerging markets, in particular booming (+11.2 per cent over the prior year). This year has the "golden triple" of the European football championships, the London Olympics and the US presidential election - which should all boost income for advertising firms. Trading at just 10.8 forward earnings WPP is a buy.In the Times Tempus likes Wood Group, the engineering company which provides ongoing maintenance to existing oil and gas facilities as well as constructing new wells and refineries and gas turbines. Gas turbines have done exceptionally well, while the maintenance arm is beginning to punch its weight and the company has exited the more cyclical well support business. Trading at 14 times earnings Tempus says the stock is a strong hold.Housebuilder Barratt isn't viewed quite so positively. Yes, it's gradually selling the low margin land stock it bought before the crisis and yes it is now building in areas of high demand. But the government's NewBuy scheme may not be the panacea the politicians hope and, despite a decent Spring, the housing market has "seen false dawns before". Trading at 15 times earnings, Barratt is a leave.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.BS